Version Final AMENDING PROTOCOL TO THE FREE TRADE AGREEMENT BETWEEN THE UNITED MEXICAN STATES AND THE STATE OF ISRAEL The Government of the United Mexican States and the Government of the State of Israel (hereinafter referred to as the "Parties"): COMMITED to strengthening their relationships; DESIRING to amend Chapters III and IV of the Free Trade Agreement between the United Mexican States and the State of Israel, signed at Mexico City on April 10, 2000 (hereinafter referred to as the "Free Trade Agreement"), concerning transshipment of goods; and DESIRING to add a new Chapter to the Free Trade Agreement regarding bilateral cooperation in the field of new technologies, supporting industries and small and medium enterprises of both Parties; HAVE AGREED as follows: Article 1 Articles 3-17, 3-18, 4-01, 4-02, 4-03 and 4-04 of the Free Trade Agreement shall be modified as set out in Annex I. Article 2 A new Chapter VIII bis shall be added to the Free Trade Agreement as set out in Annex II. Article 3 1. Annexes I and II constitute an integral part of the Free Trade Agreement. 2. This Amending Protocol shall enter into force 30 days after the date of the last written communication, through diplomatic channels, in which the Parties have notified each other that their respective internal legal requirements for the entry into force of this Amending Protocol have been fulfilled. 3. This Amending Protocol shall remain in force for as long as the Free Trade Agreement remains in force. The termination of the Free Trade Agreement, will terminate this Amending Protocol as well. In WITNESS WHEREOF, the undersigned, being duly authorized by their respective Governments, have signed this Amending Protocol. Done at _____, on this _____day of _______2008, which correspond to the ____day of_____, 5769 in duplicate in the Spanish, Hebrew and English languages, all texts being equally authentic. In case of divergence of interpretation the English text shall prevail. For the Government of the United Mexican States For the Government of the State of Israel ANNEX I 1. The wording of paragraph 3 of Article 3-17: Transshipment and Direct Expedition of the Free Trade Agreement shall be replaced as follows: "Notwithstanding paragraphs 1 and 2, an originating good that is transshipped without customs supervision through the territory of a non-Party Country, as defined in Article 4-01 of this Agreement, with which each Party has entered separately into a free trade agreement under Article XXIV of the GATT 1994, will not lose its originating status provided that it does not undergo further production other than those processes set forth in Article 3-16: Non-Qualifying Operations." 2. The wording of subparagraph 2 (c) (iii) of Article 3-18: Consultation and Modifications of the Free Trade Agreement shall be replaced as follows: "review the Certificate of Origin, the Declaration of Origin or the Declaration of Non-Qualifying Operations, set out in Article 4-02 ." 3. The following shall be inserted in Article 4-01: Definitions of the Free Trade Agreement: "non-Party Country means for the purposes of Article 3-17(3), the United States of America, Canada, the Member States of the European Union and the Member States of European Free Trade Association." 4. Article 4-02: Certificate and Declaration of Origin of the Free Trade Agreement shall be renamed as follows: “Certificate of Origin, Declaration of Origin and Declaration of NonQualifying Operations“ 5. The wording of paragraph 1 of Article 4-02: Certificate of Origin, Declaration of Origin and Declaration of Non-Qualifying Operations of the Free Trade Agreement shall be replaced as follows: "The Parties shall establish a unique form for the Certificate, the Declaration of Origin and the Declaration of Non-Qualifying Operations, and may revise the form by agreement." 6. The following shall be inserted as paragraph 7 of Article 4-02: Certificate of Origin, Declaration of Origin and Declaration of Non-Qualifying Operations of the Free Trade Agreement: "Where, under Article 3-17(3) of this Agreement, a good is transshipped through the territory of a non-Party Country with which each Party has entered into a free trade agreement under Article XXIV of the GATT 1994, the exporter in the territory of the non- Party Country may complete and sign a Declaration of NonQualifying Operations." 7. Current paragraph 7 of Article 4-02: Certificate of Origin, Declaration of Origin and Declaration of Non-Qualifying Operations shall be renumbered as paragraph 8 of Article 4-02: Certificate of Origin, Declaration of Origin and Declaration of Non-Qualifying Operations of the Free Trade Agreement. 8. The wording of paragraph 8 of Article 4-02: Certificate of Origin, Declaration of Origin and Declaration of Non-Qualifying Operations of the Free Trade Agreement shall be replaced as follows: "The Certificate of Origin for a good imported into the territory of the importing Party and the Declaration of Non-Qualifying Operations shall be completed in one of the official languages of this Agreement. If those documents are not completed in the official language of the importing Party, a translation into the English language shall be attached thereto. If such documents are completed in the English language, a translation into the Spanish or the Hebrew language shall not be required." 9. The word "and" shall be deleted from the end of subparagraph 1 (c) of Article 4-03: Obligations Regarding Importation of the Free Trade Agreement. 10. The following shall be inserted as subparagraphs 1 (d) and (e) of Article 4-03: Obligations Regarding Importation of the Free Trade Agreement: " (d) attach to the declaration of importation a copy of the Declaration of Non-Qualifying Operations that has been delivered by the exporter who has completed and signed the Certificate of Origin, where goods were transshipped through the territory of a nonParty Country in accordance with Article 3-17 (3); (e) have the original Declaration of Non-Qualifying Operations in its possession within 45 days after the importation; and " 11. Current subparagraph 1 (d) of Article 4-03: Obligations Regarding Importation shall be renumbered as subparagraph 1 (f) of Article 4-03: Obligations Regarding Importation of the Free Trade Agreement. 12. The following shall be inserted as paragraph 4 of Article 4-03: Obligations Regarding Importation of the Free Trade Agreement: "4. If the importer, in cases where goods were transshipped through the territory of a non-Party Country in accordance to Article 3-17(3), fails to submit the Declaration of Non-Qualifying Operations when the customs authority of the importing Party requested it from the importer after the period established in paragraph 1 (e) of this Article, the customs authority of the importing Party may deny them preferential tariff treatment.” 13. The following shall be inserted as paragraphs 4, 5, 6 and 7 of Article 4-04: Obligations Regarding Exportation of the Free Trade Agreement: "4. The exporter in the territory of the exporting Party who has completed and signed the Certificate of Origin shall be responsible for the veracity of the information set forth in the Declaration of NonQualifying Operations." "5. The exporter in the territory of the exporting Party who has completed and signed the Certificate of Origin shall prove the accuracy of the information included in the Declaration of NonQualifying Operations upon request of the competent authority." "6. The exporter in the territory of the exporting Party who has completed and signed the Certificate of Origin must deliver the Declaration of Non-Qualifying Operations to the importer" "7. For the purposes of Article 4-02(7), the exporter in the territory of the non-Party Country shall provide the exporter located in the territory of the exporting Party, who has completed and signed the Certificate of Origin, the information supporting the Declaration of Non-Qualifying Operations." ANNEX II CHAPTER VIII bis BILATERAL COOPERATION Article 8-01 bis: Cooperation in the Field of New Technologies 1. Recognizing that the development of new technologies will contribute to the continued expansion of their respective industries in the medium and long term; the Parties shall endeavor to develop and promote cooperative activities in the field of development of new technologies on the basis of equality and mutual benefits. Such cooperation may be addressed, but is not limited, to the following sectors: biotechnology, nanotechnology and mechatronics (electrical, mechanical and computer engineering). 2. Forms of the cooperative activities under this field may include: (a) exchange of information regarding science and technology policies, programs and data; (b) joint seminars, workshops and meetings; (c) visits and exchanges of technical personnel or other experts; (d) implementation of joint projects and programs; and (e) encouragement of cooperation for research and development related to new technologies. Article 8-02 bis: Cooperation in the Field of Supporting Industries 1. The Parties shall endeavor to cooperate in promoting the development of industries which support the assembly and innovation of products and activities of direct added value (hereinafter- supporting industries) of both Parties with a view to improving the business environment and to promoting bilateral trade and investment. 2. Such cooperation includes encouraging relevant public authorities and entities to: (a) assist private enterprises of either Party to enter supporting industries’ market of the other Party through direct investment, joint ventures and/or strategic alliances; (b) assist private enterprises of supporting industries to establish their business ties with other private enterprises of supporting industries, as well as final goods suppliers, by means of facilitating connections through events such as fairs and exhibitions; (c) assist actual or potential private enterprises of supporting industries through financial and technological support subject to each Parties respective internal rules; and (d) exchange experts and information on best practices and methodologies for the development of supporting industries and for the promotion of bilateral trade and economic cooperation. Article 8-03 bis: Cooperation in the Field of Small and Medium Enterprises 1. The Parties shall endeavor to cooperate in promoting the development of small and medium enterprises of both Parties (hereinafter referred as “SMEs”) in order to maintain the dynamism of their respective economies and promote favorable environment for bilateral trade and investment. 2. Such cooperation may include: (a) exchange of information on SMEs policies for: (i) encouraging competitiveness of SMEs; (ii) strengthening the participation of SMEs in the value chain; (iii) assisting SMEs to start up businesses; (iv) promoting entrepreneurial networks of SMEs; and (v) fostering incubator models. (b) encouragement of establishment of networks among appropriate entities of both Parties that provide assistance to SMEs; and (c) encouragement of the exchange of experts on the development of SMEs.